Business Plan for Healthyfi and Fresh Food Grocery Store

This business plan outlines the strategy for Healthyfi and Fresh Food Grocery Store, an online grocery store start-up in the UK. The report includes an industry analysis, marketing plan, operations and management team, financials, and market research.

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BUSINESS PLAN
BUSINESS DESCRIPTION / MARKET OPPORTUNITY
Entrepreneurship is a systematic process in which entrepreneur work effectively to manage their own business by taking risk and initiative
attempts in order to achieve profitability (Thabit and Raewf, 2018). The present report will be based in new business model start up company
named as Healthyfi and fresh food grocery store, UK. The company will provide various types of products such as cereals, rice and many
more. The study will design a business plan for this online grocery store a start up company.
Due to pandemic, people are more concerned about their health and prefer/ wants to purchase everything online without going outside at
physical store. People want to follow policies and rules made by government that is social distancing. Customers don't want to spend more
hours standing in a line for billing at counters (Thabit and Raewf, 2018). As more people are ordering products online, this is a good business
opportunity to small individual players who wish to start up their small grocery business online in order to make customer base in the business
environment. So, it is the great opportunity to adopt and start new online business of grocery. Healthyfi and fresh food grocery store is going
to provide huge variety of products online starting from bakery products, rice, cereals, pulses, eggs, cheese, beverages to spices. Nowadays,
online shoppers are showing interest in purchasing grocery online at reasonable cost. This is the major reason behind opening a grocery store.
In the past year, social commerce start-ups have reached at good position as they provide fresh groceries to the doorsteps of customers (Juliana
and Nyoman, 2019).. As per the industry reports and surveys taken during pandemic, the grocery industry has almost doubled their profit at
the time of lock down.
Mission statement- to provide wide range of quality service or products to customers with great online shopping experience.
vision statement- to be an independent and honest brand in which clients can make purchase from varieties of products at affordable
prices.

goals and objectives- increase profits, sales and reputation- The major goal of the company is to sell products online and earn good
reputation in the grocery industry.
Organizational structure- The company is going to follow flat organizational structure because this is a start up company with
relatively few employees and management team, but its goal is to have as little hierarchy as possible to manage business operations easily and
effectively (Nwachukwu and Chladkova, 2019).

INDUSTRY ANALYSIS
It is essential to understand the forces at work so that company can make strategic planning. Industry analysis can be beneficial for company to
review the market situation, external factors that can impact business operations and development and growth of company (Juliana and
Nyoman, 2019).. the company will be using cost leadership strategy to differentiate it from others.
Market size- the market size of grocery market value in the UK stood at around 4.3 billion in the year 2021
Growth rate- In the upcoming year the industry is going to reach over 38.9 billion revenue
Porters five forces model- it is a model used by companies in order to identify and analyse different forces that can shape every type of
industries and help them to know about their strengths and weaknesses. By using this model, healthyfi and fresh food grocery store can easily
determine corporate strategy. With the help of this model, firm can enhance a long term stability and profitability which will help them to gain
competitive advantages.
Threat of new entry
No doubt anyone can start an online grocery store, but it is necessary for them to keep track on new entrant in the market. As we all know that
new start up requires investments, customer service staff, marketing and user-friendly website where customers can buy anything, logistics etc.
In today's business environment new entrant is the biggest threat for businesses who is going to start newly (Juliana and Nyoman, 2019). This
can be done through low switching costs, so the company is going to focus on cost to compete with others. Plus, to increase customer
satisfaction the company is going to invest and make efforts in customer experience from very beginning by providing them user-friendly
website and on time delivery and return of products, this threat is high.
Threat of substitutes

To be successful the company must do market research to know about substitutes products such as combo offers on grocery items and price of
that products. If the company will have the option to forgo buying goods from other company, then healthyfi and fresh food grocery store
power can be weakened (Juliana and Nyoman, 2019).. To attain success and to deal with high threat company is going to focus on customer
experience this threat is medium.
Bargaining power of customers
Nowadays, customer ability to purchase products or service is one of the most important factors that needs to be taken into consideration while
understanding about five forces. Basically, it is influenced by how many purchasers a company has, how much it would cost a firm to attract
more new clients in the market (porter's five forces, 2022). It has been said that if the customer base is small, they have more power to
negotiate for lower prices and deal in a better way. While on other hand, if the company has many customers than it will be easy for firm to
charge higher cost in order to increase profitability. So, Healthyfi and fresh food grocery store is going to run a customer centric approach in
its online business which helps the customers to chose high quality products and receive on time delivery at affordable price this threat is high.
Bargaining power of suppliers
According to porter five force, suppliers can easily drive up the cost of inputs which can influence the business operations. It is essential for
company to have more suppliers than only they can enhance its profitability (Juliana and Nyoman, 2019). Healthyfi and fresh food grocery
store is going to work with various retailers to serve their customers. The company should ensure that all the retailers must follow policies and
rules laid out by the firm.
Competitive Rivalry
Name of competitor Differentiation
Whole food grocery
store
Use differentiation generic strategy by offering unique features
https://www.wholefoodsmarket.co.uk/
tesco food store Innovation strategy which includes focus strategy
https://www.tesco.com/groceries/
walmart Premium price strategy used by this store to gain competitive advantages
https://www.walmart.com/

OPERATIONS AND MANAGEMENT TEAM
OPERATIONS
The company is sole proprietorship, it is a grocery store which sells all its product online with the support of online supply and distribution
channels. The operation and management team focus on achieving revenue, quality of products and highest profit margins (Management
traits of an operation manager, 2022). The major role of the company's operation team is to maintain standards and improve processes. The
process involved in it is proper planning, HR processes will be conducted such as hiring skilled people, also designing of products such as
packaging, manufacturing, safety and maintenance. The supply chain management and inventory system will be used to manage stock at
warehouses and to get them to customers by transportation. The company will use supplies and equipment’s such as electronic devices, chairs,
furniture, machinery, furniture, office machines, hangers, shopping carts, racks and storage boxes .
MANAGEMENT TEAM
Name Skills What do they bring to the firm
Human resources Managing priorities and coaching skills Hire Skilled workforce
Accounts and management Critical thinking skills and analytical
knowledge
Keep financial records
Operations Time management skills and problem-
solving skills
Minimize costs and risk management
Manage stock and inventory management
Sales and marketing Communication and research skills Builds relationship with clients
MARKETING: with the help of proper marketing plan, the business can easily market and sell its products online and attract more customers
Product- Healthyfi and fresh food grocery store is going to offer a great deal on products such as cereals, fresh food items, rice, sugar and
other grocery items for household.
Price- The company is going to follow competitor-based pricing strategy which helped them to achieve success and attract more

customers. (The marketing mix and the 4Ps of marketing, 2022).
Promotional – in order to spread brand awareness among customers, the company is going to use social media platform such as
Instagram, you tube ads and Facebook as its promotional mix strategy (Lahtinen, Dietrich and Rundle-Thiele, 2020). To attract more
customers, the company also arrange marketing campaigns by offering deals such as buy 1 get 1 free. Also, it will provide sale and discount
coupons to attract more customers so that they buy their goods without thinking much.
Distribution strategy- the company will be using direct delivery to physical stores by vendors who are the suppliers and also the
customers can make purchase of groceries via its online website named as Healthyfi.com.
FINANCIALS
Sources of funds: The company is going to make investment of own savings or either take loan from commercial banks at affordable interest
rate.
Year 2022
Particulars January
Februar
y March April May June
Cash inflows
Opening cash inflow 5000 45000 101300 158918 217872 278180.2
Sales revenue 100000 102000 104040 106121 108243 110408
Other income 10000 10000 10000 10000 10000 10000

Total cash inflows 115000 157000 215340 275038.8 336115.3 398588.3
Cash outflows
Material 30000 15300 15606 15918.12 16236.48 16561.21
Labor 15000 15000 15000 15000 15000 15000
Other expenses 10000 10400 10816 11249 11699 12167
Administration expenses 15000 15000 15000 15000 15000 15000
Total cash outflows 70000 55700 56422 57166.76 57935.07 58727.74
Cash deficit / surplus or
closing cash balance 45000 101300 158918 217872 278180 339861
MARKET RESEARCH
Grocery store comes under the food retail industry provides food service facilities in order to satisfy the needs of customers. Likewise,
other industries such as hospitality industry, grocery and retail industry is also growing at fastest due to developing nations moving into a more

modern format of purchasing and selling food. This industry has great sales and revenue because of increased trend of technology and online
shopping for food and groceries. Online shopping is the most common way for people to get their products delivered at doorstep.
Peer influence impacts customer buying behaviour and expectations
Nowadays, customer trust their friends and family before purchasing they take advice from them and relied on others experience to
inform their experience related to shopping . Due to bad reviews, the customers can change their mind to purchase particular product and highly
influenced by comments and likes given by other people. This reliance on peer inputs has significant impacts on company's performance and
reputation.
PESTEL Analysis
Political factors- A small change in policies, rules and regulation made by government can influence the business operation of company.
It includes, taxation, interest rate, foreign trade policy, tariffs and labour law (Rastogi and Trivedi, 2016). So, company needs to focus on
changing rules of online retail and grocery business to grasp the opportunity given by government.
Economic factors- as we all know that this factor can directly impact the revenue of firm which includes interest rates, raw material
costs, unemployment etc. by understanding these factors company can know about the purchasing power of customer and make plan on the basis
of that . Before implementing any new strategy, it is advisable to focus on changing economic factors to gain profitability.
Social factors- to be successful, it is essential to understand customer behaviour, social trends, culture and needs for example- trends like
healthy food. Also Due to increasing trend of using technology to replace staff members can impact the company because customers will
influence their buying behaviour as per other people comment. Also, decreasing job opportunities can be a big threat for the firm so it is
suggested to provide job opportunity to people.
Technological factors- Due to changing trend in technology can influence the business operations it includes technical innovation,
technical awareness, supply chain management and many more (Pestle analysis, 2022). By using new technologies such as on time delivery and
plan properly for logistics and distribution channels the grocery store can achieve success.

Legal factors- Before implementing any strategy in business operations the company must on industry regulation, health and safety
standards and customer law to run its business smoothly in the market. The company needs to focus on antitrust law because it a threat for
company as it can reduce the growth and profitability if not followed properly.
Environmental factors- nowadays, customers are more environmental conscious, so it is essential for company to focus on ecological
factors, wastage management and maintain sustainability and adopt CSR system in the company. It includes reduce plastic, utilize renewable
energy and provide eco-friendly services. To maintain sustainability the company is going to focus on health and safety of customers and
employees by following all the laws related to it. Healthyfi and fresh food grocery store has opportunities to improve its business performance in
sustainability and waste management.

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